The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just completed year. Sales-1,150
Raw materials inventory, beginning--- 15
Raw materials inventory, ending--- 40
Purchases of raw materials--- 150
Direct labor--- 250
Manufacturing overhead--- 300
Administrative expenses--- 500
Selling expenses--- 300
Work in process inventory, beginning--- 100
Work in process inventory, ending--- 150
Finished goods inventory, beginning--- 80
Finished goods inventory, ending--- 120
Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated?
Your tutorial (ATTACHED) gives you a report showing how to find the missing amount ...
Your tutorial (attached in Excel) gives you a report showing how to find the missing amount to compute cost of goods manufactured and cost of goods sold. Click in the cells to see the computations for missing amounts. A proforma income statement is given with inventory overstated and understated so you can "see" how the profit is changed. The excel spreadsheet is then a template for other problems that permit you to compute these amounts.